5 Best Life Insurance Companies Of 2020

Easily find the right insurance policy from our recommended list of the best life insurance providers of 2020.

Last Updated: October 24, 2020

AM Best Rating: A.M. Best's Financial Strength Rating (FSR) is a measure of an insurer's financial strength and ability to pay out claims to policyholders. An "A" rating with A.M. Best indicates that an insurer is considered to be top of the industry in ability to meet ongoing insurance obligations.

  • Fabric's lowest rate displayed is for a 10-year, $100k policy for a 21 year-old female residing in Florida.

Best For No Medical Exam & Fast 100% Online Application: Bestow

If you’re looking for quick life insurance coverage that doesn’t require a medical exam, Bestow might be the right choice for you.

Bestow offers quotes in just seconds and coverage can be purchased in minutes, if approved. They never require a medical exam, which means no needles and no waiting. Term life insurance policies are offered in every state except New York, with coverage all the way up to $1,000,000.

You can purchase life insurance offered by Bestow as long as you are between the ages of 21 and 55. The 20-year term policy is only available to applicants under 45 years-old, however.

For added peace of mind, Bestow offers a free 30-day look period. This means that if you decide the policy isn’t right for you, you can get a full refund of your premiums as long as you cancel within the first 30 days of purchasing. Bestow also offers a 60-day grace period, if you ever have trouble making your premium payments.

Quick facts about policies offered by Bestow:

  • No medical exam required, ever
  • Get quotes 100% online in seconds and a decision in as a little as 5 minutes
  • Purchase coverage from $50,000 to $1,000,000
  • Choose from 10- and 20-year term policies
  • Coverage available in 49 states (New York excluded)
  • Policies provided by A+ (Superior) rated company

Most Flexible Life Insurance: Ladder

Buying life insurance can be a decades-long commitment. Considering that your financial needs may change over time, though, it makes sense that you should be able to change your life insurance coverage as well.

With Ladder, you are able to decrease your coverage at any time through the online platform. Whether you pay down your mortgage, your kids become adults, or your household debt is eliminated, you can easily lower your coverage limits (and premiums) with just a few clicks.

If you decide later on that you actually need more coverage — up to a maximum of $8,000,000 — you can apply for higher limits without needing to purchase a brand new policy. This makes Ladder incredibly unique in the life insurance world, and a great option if you think there’s a chance that your needs will change over the years (in either direction).

Policies from Ladder are available in 10-, 15-, 20-, 25-, and 30-year terms, ranging from $100,000 to $8,000,000 in coverage. You can buy a policy as long as you’re between 20 and 60 years of age, though your coverage will only stay with you through age 70.

Ladder term life insurance policies are available in all 50 states, with the insurer holding an A+ (Superior) rating from AM Best.

Quick facts about Ladder:

  • Increase or decrease coverage as needed
  • Available in all 50 states
  • Up to $8,000,000 in coverage offered
  • A (Superior) rating from AM Best

Best Rated For Financial Strength & Best Riders: Haven Life

When buying life insurance, it’s important to pick a policy that can be customized to fit your personal needs while also providing you with peace of mind for years to come. Through Haven Life, you can check both of those boxes.

Haven Life offers a number of rider options to choose from, so you can build the coverage that suits you best. One rider option is a waiver of premium (available in certain states), which means the insured won’t have to pay premiums if they are totally disabled due to illness or injury.

The next is an accelerated death benefit, which allows the insured to collect a portion of their policy’s death benefit while still living, if they are diagnosed with a terminal illness. With guaranteed renewability, a policy can be renewed at the end of its term no matter what, even if the insured becomes ill.

Lastly, Haven Life Plus is an add-on rider that offers the insured access to a variety of helpful benefits and services including MinuteClinic access, Aaptiv enrollment, and LifeSite storage.

Haven Life term life insurance policies are available to applicants ages 18-64, for coverage up to $3,000,000 (only $1,000,000 if you’re 60-64). Products are offered in all 50 states and the District of Columbia, with all policies being backed by MassMutual, an A++ (Superior) rated insurer from AM Best.

Quick facts about Haven Life:

  • Available in all 50 states and DC
  • Up to $3,000,000 in coverage offered
  • InstantTerm gives immediate coverage (up to $1,000,000) for qualified applicants age 59 and under
  • Multiple riders to choose from
  • A++ (Superior) rating from AM Best

Best For Ages 50+: National Family Assurance

The older you are, the more difficult (and expensive) it can be to purchase life insurance coverage. If you’re over 50, National Family Assurance might be worth considering, if you want a buying process that doesn’t involve medical exams and guaranteed coverage for the rest of your life.

By applying through National Family Assurance, you are able to shop around for the right coverage for you based on your age, location, coverage needs, and medical history. The best policy may be offered by National Family Assurance or it may be offered by one of their partner insurers; either way, you can view multiple results with one simple search.

With a BBB rating of A+, and guaranteed renewal coverage available, National Family Assurance is a great place to start your search if you are 50 or above.

Quick facts about National Family Assurance:

  • No medical exam is needed
  • Guaranteed renewal coverage for life
  • Can help you find the best policy, even if it’s with another insurer
  • A+ rating from the BBB

Best For Healthy Lifestyles: Sproutt

The healthier your lifestyle, the less of a risk you pose to a life insurance company. Why not be rewarded for those choices?

With Sproutt, that’s exactly what you’ll get. Sproutt helps you find life insurance coverage across a network of vetted partner insurers. Using a combination of digital technology and human underwriting, Sproutt searches for the best policy to suit your needs based on your lifestyle choices, health, coverage preferences, and personal needs.

Sproutt's proprietary QL Index analyzes a number of your lifestyle choices — such as exercise, sleep, stress levels, and nutrition — to determine the policies that are right (and most affordable) for you. The entire Sproutt application process can be completed online, too, meaning that you can do it anytime and from anywhere.

Coverage is available in all 50 states and the District of Columbia, between the Sproutt network of partner insurers. Depending on which company you choose, there are many riders and coverage limits to choose from, with terms ranging from five to 30 years in length.

Quick facts about Sproutt:

  • Get rewarded for healthy lifestyle choices
  • Compare coverage from a number of different insurers, each offering the policy that suits you and your needs best
  • Available nationwide
  • Coverage offered up to $10,000,000

Why Buying Term Life Insurance is Important

Most of us already know that life insurance plays a key role in any long-term financial plan, especially if we have loved ones or assets that we want to protect. But do you know exactly why life insurance is so important?

Let’s take a look at what term life insurance coverage can actually provide to those you love, and what makes it such a powerful purchase.

It can replace your income. Whether you are the sole breadwinner in your home or earn alongside your spouse, the loss of your income would likely put a serious strain on your family. With a term life insurance policy, you can replace that income for a determined number of years to help with financial protection for your loved ones.

It protects your estate. After your death, creditors will happily line up for their share of your assets. Whether you have a mortgage, credit card debt, co-signed student loans, or even auto loans, a term life insurance policy can help protect your estate so that your family can keep what you have worked hard to earn.

It can provide for the future. You can use term life insurance proceeds to provide for any number of future plans, such as your children’s college tuition, weddings, or the down payment on their first homes. You may even want to use term life insurance to fund a special endowment, scholarship, or even as a source of generational wealth.

It can cover costly final expenses. These days, the average funeral can easily cost $12,000 or more*. Between that and potential medical expenses, term life insurance proceeds can save your family from these hefty bills.

Term vs Whole Life

If you’ve been shopping around for life insurance coverage, you may have come across both term and whole life coverage options. So why would you choose term life over whole life, and what are the advantages of this specific life insurance product?

  • Term life insurance is more affordable. Term life insurance is usually a fraction of the cost of whole life insurance. For example, $50,000 of death benefit for a term life policy offered by Bestow starts at $8 a month.
  • Term life insurance is flexible. Need to increase your coverage because you got married, had children, or bought a home (or all three)? Term life insurance policies can often be increased; if not, you have the option to cancel your existing policy and simply buy a new one that better meets your needs.
  • Term life insurance doesn’t have to last forever. Many people purchase life insurance to protect their families while the kids are young, or to cover their mortgage until the family home is paid off. Over time, though, the kids grow up and the house gets paid off, sometimes eliminating the need for life insurance coverage. With term life, you can buy a policy that protects you for as long as you need it, and ends when you don’t.

There are also benefits to whole life, such as those who are looking for a policy that builds cash value. If you are unsure what is best for you, check out National Family's products (our recommended provider for comparing term and whole life policies, especially for those over 50).

When to Buy Life Insurance

Most of us have decades’ worth of exciting plans in mind. Unfortunately, death can sometimes come unexpectedly, making it important to buy life insurance when you hit certain milestones.

Wondering if this is the right time to spring for a new term life policy? Here is when you should consider buying coverage.

Buy while you’re young. The earlier you buy a life insurance policy, the less you’ll typically pay for coverage. That’s because your age, health, and pre-existing conditions all play a role in not just the price you pay, but whether you’re approved for coverage to begin with.

By locking in lower rates while you’re young, you can save hundreds — or even thousands — on life insurance premiums. And if you need more coverage later down the line, you can always add more or purchase a new policy.

Buy if you have others to provide for. If others rely on you for support (financial or otherwise), life insurance makes sense. So when you get married, have children, or as your parents begin to age, it might be the right time to buy a policy.

Buy if you have debt. Rather than leaving your loved ones holding the bag for certain debts, you can use life insurance proceeds as financial protection. Your coverage can pay off the mortgage on the family home, wipe out shared credit card debt, or even eliminate those student loans that your parents co-signed for years ago.

Benefits of Online Life Insurance

Life insurance looks very different today than it did 30, 20, or even 10 years ago. Rather than walking into an insurance agent’s office, you can buy a term life policy online in minutes, even if it’s at 2am.

There are many benefits to the online life insurance trend, too.

  • Because the application process is 100% online — avoiding costly office overhead and in-person interviews — many insurtech companies are able to offer lower premiums to consumers.
  • Applicants can answer questions, provide documentation, and submit applications in minutes, turning a process that used to take weeks or months into one that can often take minutes.
  • Even though some of the popular online life insurance platforms are new to the scene, many are backed by established, trusted names in the industry. For instance, National Family was only launched in 2016, but is owned and backed by Prudential, a company that’s been around since 1875.
  • Thanks to cutting-edge algorithms, online life insurers are able to provide immediate coverage to most consumers without the need for a medical exam.

Of course, everyone’s experience will be different and can depend on a number of personal factors. However, the insurtech of today has made the life insurance-buying experience easier and faster than ever for nearly all consumers.

FAQ

Can I still buy life insurance during a pandemic?

With the novel coronavirus affecting the entire world, it might seem like life insurance companies would stop writing new policies. The exact opposite is true, however! You can absolutely still buy term life insurance right now (even during a pandemic).

If you are required to have a medical exam, there may be a waiting period before your coverage kicks in. Or, in some cases, you may be provided with temporary coverage until your exam can be coordinated.

How quickly can I get life insurance coverage?

Depending on your health history, age, and a few other personal factors, you can theoretically have an approved life insurance policy in mere minutes. Companies like Bestow and Haven Life can approve you without a medical exam, and qualifying National Family customers often get an answer in less than a minute.

All that’s left then is to upload any required documentation and make your first premium payment, and you’re covered.

Will life insurance cover a COVID-19 related death?

Typically a pandemic is not excluded from life insurance coverage, but you will need to check your specific policy for confirmation. Just be sure to disclose any current illnesses, medical concerns, and recent or upcoming travel; these won’t necessarily exclude you from approval, but there may be a waiting period involved before your coverage kicks in.

Is the coronavirus affecting the price of life insurance?

As of yet, term life insurance premiums seem to be holding steady even with the global impacts of the coronavirus. While that situation could always change later on down the line — depending on how the pandemic plays out, for instance — prices are staying low for now.

* Funeral costs - source: https://money.usnews.com/money/personal-finance/saving-and-budgeting/articles/funeral-costs-to-plan-for